A freight train connecting Vietnam with China.

Leveraging its strategic position along the Kunming – Lao Cai – Hanoi – Hai Phong – Quang Ninh economic corridor, the northern province of Lao Cai is rolling out key initiatives to strengthen its logistics and e-commerce sectors, aiming to facilitate cross-border trade with China’s Yunnan province and drive border trade growth between Vietnam and China.

According to Hoang Quoc Khanh, Permanent Vice Chairman of the provincial People’s Committee, nearly 700 Vietnamese enterprises are engaged in regular import-export activities through the Lao Cai – Hekou international border gate. However, logistics infrastructure remains a challenge, leading to high transportation costs along the economic corridor.

Nguyen Dinh Vuong, Deputy General Director of SITC Bondex Vietnam Logistics Co. Ltd., emphasised that transportation infrastructure is the backbone of logistics development. He urged Lao Cai to fast-track the construction of the Lao Cai – Hanoi – Hai Phong railway and Sa Pa airport, upgrades to the Noi Bai – Lao Cai expressway, and improvements in transport infrastructure within the border economic zone.
Additionally, he called for preferential policies to attract major investors in logistics and freight transport, strengthening Lao Cai’s role as a cross-border trade hub.

Vuong Trinh Quoc, head of the Management Board of the Lao Cai Economic Zone, affirmed the province’s commitment to fostering a business-friendly environment. Measures include enhancing infrastructure, streamlining administrative procedures, facilitating customs clearance, expanding logistics services to support import-export activities and refining policies to attract investment and position Lao Cai as an international logistics hub.

Khanh further announced that Lao Cai will develop a network of inland ports and logistics hubs, with a total cargo clearance capacity exceeding 1.5 million TEUs. These hubs will be established in Lao Cai, Kim Thanh – Ban Vuoc area, and other strategic locations linked to Sa Pa airport. The province will also construct new warehouses and logistics centres to support goods transshipment and storage, maximising Lao Cai’s geographic advantages.

Despite logistics advancements, cross-border e-commerce between Lao Cai and China faces hurdles, mainly due to limited understanding of Chinese consumer culture and low brand recognition of Vietnamese products.

Phan Trung Ba, Director of the Lao Cai Department of Finance, outlined steps to remove these barriers, including connecting local specialty products with Yunnan province. He emphasised the need to organise exhibitions and trade showcases to introduce Vietnamese goods to the Chinese market and establish a research and development (R&D) centre to bridge market gaps and connect manufacturers, service providers, and distributors.

To further support digital trade, Lao Cai is developing an integrated supply chain network that ensures seamless delivery from factories to end consumers. The province also plans to invest in online export infrastructure, featuring O2O (Online-to-Offline) sales models, showroom spaces combined with livestream studios, training programmes for Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) and B2B and B2C e-commerce platforms to facilitate direct exports.

By implementing these strategies, Lao Cai aims to strengthen its logistics capabilities, enhance cross-border e-commerce, and cement its position as a key trade gateway between Vietnam and China.